Diamondback Energy (NASDAQ: FANG) is one of 243 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its rivals? We will compare Diamondback Energy to related companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Institutional and Insider Ownership

61.8% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.4% of Diamondback Energy shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Diamondback Energy has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Diamondback Energy’s rivals have a beta of 1.41, suggesting that their average stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Diamondback Energy and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamondback Energy 0 3 19 0 2.86
Diamondback Energy Competitors 1575 7896 12211 268 2.51

Diamondback Energy presently has a consensus target price of $115.95, indicating a potential upside of 21.11%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 41.21%. Given Diamondback Energy’s rivals higher probable upside, analysts clearly believe Diamondback Energy has less favorable growth aspects than its rivals.

Profitability

This table compares Diamondback Energy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamondback Energy 38.24% 8.09% 6.34%
Diamondback Energy Competitors -449.27% 1.65% 0.69%

Earnings & Valuation

This table compares Diamondback Energy and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diamondback Energy $829.62 million $676.65 million 28.49
Diamondback Energy Competitors $1.42 billion $609.27 million 20.84

Diamondback Energy’s rivals have higher revenue, but lower earnings than Diamondback Energy. Diamondback Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Diamondback Energy beats its rivals on 7 of the 13 factors compared.

About Diamondback Energy

Diamondback Energy, Inc. is an independent oil and natural gas company. The Company focuses on the acquisition, development, exploration and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2016, the Company’s total net acreage position in the Permian Basin was approximately 105,894 net acres. As of December 31, 2016, the Company, through its subsidiary, Viper Energy Partners LP (Viper), owned mineral interests underlying approximately 107,568 gross acres primarily in Midland County, Texas in the Permian Basin. The Permian Basin area covers a portion of western Texas and eastern New Mexico. The Company’s reserves are located in the Permian Basin of West Texas, in particular in the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations. The Company refers to the Clearfork, Spraberry, Wolfcamp, Strawn and Atoka formations collectively as the Wolfberry play.

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